What can be deducted
A deposit guarantees the owner against what the tenant leaves unpaid or damaged. Typically that is:
- rent still owed when the tenant leaves;
- repairs to damage beyond normal wear and tear;
- cleaning needed to return the place to the state it was in on arrival;
- bills the lease put in the tenant's name and left unpaid, and keys not returned.
Normal wear and tear is not damage
A place that has been lived in shows it. Faded paint, small marks on the walls, carpet worn where people walk, loose door handles and a few nail holes from hanging pictures are the ordinary result of living there. Holes in walls, burns, broken windows or fixtures, stains that will not clean and damage done by pets are not. The longer the tenancy, the more wear is normal.
Evidence on both sides
The fairest deposit returns start on moving-in day: a list of the state of each room, with dated photos, signed by both sides. Our move-in inspection checklist covers it room by room. At the end, deductions should be itemized and backed by receipts or quotes.
Limits and deadlines
Many states and countries cap the size of a deposit, set a deadline for returning it after the tenant leaves, and require a written list of deductions. Some require interest to be paid on it. The rules depend on where the place is: check the ones that apply before you sign, and before you deduct anything.
Using the deposit as the last month's rent is usually not allowed unless the owner agrees, in writing.